Pechmann Coaching - Latest Comments

Re: 25 Things You Might NOT Know About Me

Barbhubbs — Thu, 20 Oct 2011 09:45:00 -0000

Obie

Re: 027- Seth Jervis of Signature Properties

Steve Stewart — Mon, 12 Sep 2011 18:02:16 -0000

I have to respectfully add my comments that could be construed as being an argument, but it needs to be added to the discussion:

Mr. Jervis used the example of renting at $500 a month, a total expense of $18,000 for 3 years of renting. He compared this to buying a $100,000 home with a mortgage (it was implied since the discussion was not centered around living in a property with no payment) in a Kingsport location that appreciates at 6% annually (which is awesome!) gaining $18,000 in value/equity - a $36,000 swing. I can agree with those numbers. But what needs to be added to the discussion are the expenses of owning a home:

When you Rent: You are not responsible for repairs and maintenance of the property (other than keeping it clean and not destroying the place). A dripping faucet, leaking water heater, broken air conditioner - these are expenses that renters do not have to deal with. In many cases the monthly rental cost may include some utilities like electricity, water, trash, and some places even include wi-fi and/or cable.

When you Own: A monthly mortgage payment does not include those things noted above - you pay it all on top of the monthly obligation. When this is not taken into consideration before signing the loan documents then people can become "House Poor" (I talked a lot about this in my recent podcast "House Poor Are You?"). A majority of their income goes to the monthly mortgage, repairs, and maintenance and leaves little (or less) room for savings or wealth building.

I agree that home ownership has MANY benefits, but when you look at them you will quickly find the majority are not financial: they are comfort, safety, security, and personalization. Tax deductions and equity are financial benefits but when you net-out the annual expenses of utilities and repairs you will find that the gap is not as large as implied.

Mr. Jervis did speak about showing his clients houses that are not at the apex of the bank's pre-approval amount (which we know from the past decade has been overly generous). I appreciate him saying that out loud and would venture to guess he probably agrees with me. It just wasn't included in the podcast.

Greg, thanks for having a comments section so that people like me can voice their thoughts!

Re: Are You on the Right Track or Are You Still Dreaming?

Merchant Services — Tue, 02 Aug 2011 08:59:55 -0000

That was very helpful post before planning of finance

Re: My video business card

gpechmann — Wed, 22 Jun 2011 14:32:21 -0000

Appreciate it Chris......they did a great job for me...

Re: My video business card

Chris Ensey — Wed, 22 Jun 2011 11:32:16 -0000

That's great, Gregg! It's a nice combination of things working together. Good message, nice images, and it let's someone know that there is a person behind the name.

Re: Realtor’s/Buyers: A must watch……Time to get off the fence?

gpechmann — Tue, 21 Jun 2011 13:03:01 -0000

Great points Chris as always....the reduced payments are attractive, but make sure it fits in your budget.

Re: Realtor’s/Buyers: A must watch……Time to get off the fence?

Chris Ensey — Tue, 21 Jun 2011 07:51:29 -0000

Hey, Gregg. You bring up a good point here -- which is, there are lots of factors to consider if you're thinking about buying or renting. It's not just the overall price but the interest rates, as well.

This also applies in you're planning to refinance, too. It's possible you could refinance to a shorter term at a lower rate and even have a lower payment than you have now!

But, as you note (and it's always worth mentioning again)... Don't buy stuff you can't afford! So, just because you COULD get a $400k mortgage, you may not need it, as well. Don't get seduced by reduced payments to make you think you should go for more than you really need!

Re: Don’t Buy Stuff You Can’t Afford

gpechmann — Fri, 10 Jun 2011 08:22:50 -0000

That is the million dollar question , isn't it? well trillion when dealing with the government

Re: Don’t Buy Stuff You Can’t Afford

Cindy Hirch — Fri, 10 Jun 2011 08:10:41 -0000

This is great! Makes a great point in a way people will relate to. But will they really get it???

Re: Don’t Buy Stuff You Can’t Afford

gpechmann — Fri, 10 Jun 2011 08:03:08 -0000

yes it is Matt. The simplicity is classic....

Re: Don’t Buy Stuff You Can’t Afford

Matt Wegner — Thu, 09 Jun 2011 17:23:38 -0000

One of my all time favorites Gregg. I've had it on my site for a while - I think I need to make it a sticky post or something because it's so funny!

Re: Don’t Buy Stuff You Can’t Afford

gpechmann — Thu, 09 Jun 2011 14:57:32 -0000

Absolutely Chris! I played this at the Women's Council of Realtors today and they thought it was hilarious....

Re: Don’t Buy Stuff You Can’t Afford

Chris Ensey — Thu, 09 Jun 2011 08:40:00 -0000

Hey, Gregg. I think we can definitely put this one in the "It's funny because it's true" category. It seems funny that you would have to tell people this kind of thing, but you do. Delayed gratification is becoming a dying art, wouldn't you say?

Re: 12 Step Strategy for My Next Million | Fighting Back Financially

Eric Sherer — Tue, 07 Jun 2011 16:08:23 -0000

Charge indeed! Gregg, All of us like-minded people should live closer togther so we can go out to lunch together and share more great thoughts like the one in this post! Right on!

Re: 018- My Big Decisions| Fighting Back Financially

gpechmann — Fri, 03 Jun 2011 13:15:11 -0000

No problem ...thanks for hanging with me through the "technical difficulties"!

Re: 018- My Big Decisions| Fighting Back Financially

gpechmann — Fri, 03 Jun 2011 13:14:28 -0000

Glad to be back doing FBF....thanks for the support brother!

Re: 018- My Big Decisions| Fighting Back Financially

Jon White — Fri, 03 Jun 2011 12:37:45 -0000

Welcome back Gregg! Missed the show during its hiatus but
glad to see things are looking up for you and your family as you get back in
the mortgage business. Looking forward to more great content from you in the
future.

Re: 018- My Big Decisions| Fighting Back Financially

Matt Wegner — Fri, 03 Jun 2011 10:22:20 -0000

Good show today Gregg. Sorry I had to duck out early!

Re: Legacy and Lag Time | Fighting Back Financially

gpechmann — Wed, 01 Jun 2011 13:03:23 -0000

Great point Chris.....anything worthwhile in life is hard. Going through the fire and/or tough times will eventually make us stronger....

Re: Legacy and Lag Time | Fighting Back Financially

gpechmann — Wed, 01 Jun 2011 13:00:24 -0000

kind of hit me between my eyes on that point Rob.....thanks for sharing your input....

Re: Legacy and Lag Time | Fighting Back Financially

Rob Clinton — Wed, 01 Jun 2011 12:48:58 -0000

Great stuff Gregg! Time like money is a resource that dwindles away, unless we invest it wisely. I love how you made the dinstinction of whether God will care about your retirement fund, or care about how you managed His money.

Re: Legacy and Lag Time | Fighting Back Financially

Chris Ensey — Wed, 01 Jun 2011 12:22:36 -0000

Nice job, Gregg! It really is important to start considering this. Most people are living beyond their means now -- and a vast majority of them can probably scale back to make savings possible. We just need discipline and forethought, too.

I think one of the main problems is that many people don't focus on the future for one reason or another. Granted, as we've talked about before, everything in moderation. You don't have to save every free dime you have -- you should still take time to have fun, enjoy it with your family, help others, etc. But, we can all find ways to scale back and find some balance in there!

No, I'm not saying it's easy, but yes, it can be done.

Re: Legacy and Lag Time | Fighting Back Financially

gpechmann — Wed, 01 Jun 2011 11:17:36 -0000

You bet Brent...thanks for the feedback. What we do today , has generational recuperations.....

Re: Legacy and Lag Time | Fighting Back Financially

Brent Kelly — Wed, 01 Jun 2011 10:22:49 -0000

Great post Gregg. This really makes you stop and think. Thanks for sharing.

Re: Do You Need an Emergency Fund?

Jenny — Tue, 24 May 2011 09:40:39 -0000

Thank you for the kind words Cindy. I'm so glad you enjoyed the post. :)